+91 9580 740 740 WhatsApp

Can Data Analytics Be Replaced By AI? Find Out Here

The importance of data analysis has increased as firms increasingly rely on data-driven insights to make strategic choices. However, with the introduction of Chat GPT and other mass-market generative AI models in recent months, discussion about Artificial Intelligence (AI) has been at its peak. And can data analytics be replaced by AI? Such questions are making some people worried about this profession. Many job responsibilities, including data analysts, might be revolutionized by these powerful technologies. But does that mean those data analysts are no longer needed?

Can Data Analytics be replaced by AI

Here in this article, we will explore AI, its impact, how AI will have a significant role in this field, and can work alongside data analysts to get better results.

What is AI?

Think of Artificial Intelligence as a machine that can perform tasks that we previously believed only humans could do, such as thinking, visual perception, speech recognition, decision-making, language translation, etc.

Nowadays, it is difficult to deny the impact of AI on our daily lives because almost every industry has been affected by AI. However, while some are positive impacts others are less optimistic. 

It is predicted that AI will continue to play an increasingly important role in data analysis as data grows more diverse and abundant this will increase the value of AI’s capacity to process and effectively examine data.

This has been particularly true, as data collection and analysis have greatly expanded as a result of strong internet connections, the expansion of connected devices, and ever-fast computing processing. 

Must Read:

In an effort to mimic human intellect, artificial intelligence or AI combines computer science and technology. Programming is needed to enable computers to analyze data and perform calculations much more quickly than humans. 

The way we get insights from massive volumes of information has been revolutionized by AI.

Every industry has indeed been using artificial intelligence which mainly refers to machine learning.  Unquestionably, one of the benefits of AI is its capacity to make sense of large amounts of data, find patterns, and provide results in reports, papers, and forms that are simple for humans to understand.

Anyone can use Chat GPT and comparable technologies based on large language models (LLM) and natural language processing (NLP) with ease and effectiveness.

So Firstly Let’s Understand a Chat GPT, LLM, and NLP.

Chat GPT:

A conversational interface or chatbot called Chat GPT (Generative Pre-Trained Transformer), created by the research organization Open AI, is powered by an LLM named GPT-3.


The LLM (Large Language Model) is a part of the natural language processing branch of machine learning, which effectively enables us to communicate with machines and have them respond to us in natural (human) languages.

This basically implies that we can ask it a question in either English or in any 100 languages.

Python, JavaScript, and C++ are just a few of the well-known programming languages that it can read, comprehend, and produce computer code in.

You may also want to know about:

Since Alexa, Siri and other AI assistants have become increasingly common; we have become familiar with dealing with NLP technology.

However, the LLM underneath GPT-3 and ChatGPT are many times bigger, letting it grasp far more complicated inputs and produce much more advanced outputs.

So, Does a CEO really need to worry about hiring, training, and keeping an expensive analyst staff if they can easily ask a computer, “What do I need to do to improve customer satisfaction?” Or “How can I make more sales?”

In fact, that staff could end up being much more crucial to a company’s operations than it is now, as AI becomes more widely available, and accepted. But there’s no denying that their occupations will experience significant change.

Let’s See How This AI Can Impact the Data and Analytics Industry as It Gets More Widely Used in the Near Future and Its Limitations.

How AI Can Help in Data Analytics and Its Impact 

Innovation in data analysis is now synonymous with artificial intelligence and machine learning. 

The way analysts perform their work is changing as a result of their capacity to automate procedures and discover hidden patterns in data sets.

NPL is a type of AI that gives computers the skills to comprehend and analyze human language. This method is frequently used in sentiment analysis, which examines massive amounts of unstructured data, such as customer reviews, to determine the general sentiment toward a specific product or service.

In Data Analysis Process:

  • AI gives analysts the tools they need to quickly and precisely delve through huge amounts of data.
  • Data preparation is one of the main areas where AI is having a big influence.
  • Data collection, cleaning, and categorization are common first steps in data analysis, and they can be time-consuming and difficult. But a lot of this process can be automated using AI.
  • Images and videos can be analyzed by AI systems to extract useful information. 
  • Large amounts of data can be handled and cleaned by machine learning algorithms at a rate that would be impossible for human analysts.
  • Data analysts no longer have to deal with a significant amount of work thanks to this degree of automation, which frees them up to focus more on gathering useful insights from the data.
  • Data analysts can use AI-driven automation to offload repetitive tasks and focus on those that need human intelligence and judgments.
  • Automation also lowers the possibility of mistakes, which produces outcomes that are more reliable and accurate.

Recommended Reads:

In Decision Making:

  • The offering of AI-powered insights also promotes improved decision-making.
  • Previously, data analysts used historical data to provide reports and forecasts. Although this method has positive aspects, at the same time, it’s frequently time-consuming and demands a high level of knowledge.
  • By using innovative algorithms, and predictive models to provide insights fast and precisely, AI simplifies this process.
  • AI is a vital tool in the decision-making process because of its capacity to evaluate data in real-time and forecast trends.

Forecasting Trends:

  • It excels in identifying trends and collecting information from the data to give a more comprehensive picture.
  • The practice of predicting is also changing as a result of AI. 
  • When dealing with unstable markets or uncertain circumstances, traditional statistical methods of predicting can sometimes be difficult and inefficient. AI can produce more precise projections because of its capacity to adapt to new data and learn from it.
  • Machine learning models get more trustworthy as they consume more data because they can evaluate and learn from previous data patterns to forecast future trends.

How Does the Analysis of AI Data Differ From Traditional Data Analysis?

  • AI and traditional data analysis differ primarily in terms of capabilities and computer independence. 
  • We had already reached the maximum amount of data that humans could process adequately.
  • Data analysis often requires so many resources to proceed that it quickly becomes difficult and inefficient. 
  • AI-based systems can process far more data and move at a faster rate to produce better outcomes.
  • Additionally, systems that use machine learning provide computers the ability to learn and function on their own, transforming various types of raw data into insightful analysis. These systems initially require human input, but eventually become self-sufficient, freeing up employees to focus on other important tasks.

Learn more:

Limitations of AI:

  • The use of AI in data analysis will only increase, automating additional responsibilities for analysts.
  • Although AI has a lot of potential, there are some limitations as well. 
  • AI algorithms work based on trends and principles identified from past data.
  • They are unable to make subjective judgments, understand complex business needs, or evaluate documentation.  But as things are, managing AI technologies and understanding data still require the human touch, which cannot be replaced.
  • Data analysts are provided with subject-matter expertise, critical thinking skills, and the ability to come up with sophisticated inquiries that go beyond what current AI algorithms are capable of.
  • No matter how sophisticated AI models get, they will never be able to replace essential analytics skills like ethical judgment, strategic planning, emotional intelligence, critical thinking, and the ability to come up with complex inquiries.
  • The need for people’s skills will become more and clearer as we rely more on AI-based solutions.
  • The ideal situation involves using AI as a powerful tool that works in sync with human analysts, allowing them to focus more on in-depth analysis, strategic decision-making, and using their expertise.

Here Are Some of the Advantages and Disadvantages of Using AI.

Eliminates Human Errors and RisksCostly Implementation
24/7 AvailabilityLack of Emotions and Creativity
Unbiased Decision MakingData Privacy
Do Repetitive WorksTechnical Limitations
Cost ReductionAlgorithm Bias
Data Acquisition and AnalysisDegradation
No Improvement with Experience
Ethical Problems
Reduced Some Human Jobs

The Future of AI in Data Analytics

Looking towards the future of data analysis, artificial intelligence will play a more significant role. Data analysts won’t go out of style because of this. Instead they will continue to develop their job and collaborate with AI to improve decision making and provide more insightful data.

It is expected that AI and machine learning will advance over time and eventually be able to handle even more difficult tasks. 

  • Artificial intelligence will be better able to understand and decode unstructured data like photos, text, and even human emotions as a result of developments in fields like natural language processing and deep learning.
  • This might set the way for a future in which data analysts not only study numerical data but also look into nontraditional data sources. 
  • For instance, analysis of customer feedback or social media opinions can become as usual as examining sales data.
  • Data analysts can find themselves analyzing AI-generated insights from these many sources as well as directing AI’s learning process by posing the proper questions.
  • Additionally, as AI models advance in strength and competence, they will be able to forecast outcomes with greater accuracy.
  • The accuracy of machine learning models that forecast consumer or market trends will improve. 
  • In the future, data analysis will be crucial in conforming these ideas, understanding their implications, and converting them into a workable manner.

Recommend Read,

Is AI a Threat to Data Analytics?

We have seen how AI can be useful in the data analytics field and how AI makes it simple to automate some of the tasks that are often performed in analytical work such as data, business, and financial analysis. The techniques will probably improve its efficiency in future versions.

However, it is not obvious that everyone in an analytical position is at threat and will lose their job right away. This is mostly due to the fact that even the most advanced NLP and LLM tools today still lack skills like complex problem-solving, strategic planning, and critical thinking.

The majority of experts believe that it is unlikely that machine learning-based technologies will able to do these works at a level comparable to humans.

Businesses and other organizations will probably continue to require professionals in this industry for some time to come.

Having said that, jobs in analytics that just need repetitive labor are expected to become entirely automated in the near future and some job losses are probably expected as a result.

New jobs will also be generated at the same time. These will likely focus on the capacity to use tools like chat GPT while also exhibiting human judgment, problem-solving, strategy, team-building, and leadership.

Hundreds of millions of individuals have quickly adopted this technology and started to use it in their jobs, including marketers, software engineers, salesmen, and data scientists. It is predicted that tools like chat GPT and the models upon which they are based will continue to advance to the point where they can execute and automate creative tasks at a very high level, including content writing, media production, designing, and even coding.

Certainly, this creative task involves a lot of the work carried out by data analysts, including data preparation and cleaning, exploratory data analysis, statistical analysis, data visualization, and report development.

Can Data Analytics be Replaced by AI?

  • Generative AI can automate certain data-related tasks, but it won’t likely be able to take the place of human creativity, strategic thinking, and the requirement of human touch as we mentioned above.
  • Instead, it will keep improving as a tool to increase our productivity and capacities.
  • Yes, it’s becoming obvious that AI will take over some of the analyst’s responsibilities. 
  • However, many other components will be improved or simplified helping analysts to produce better work in less time.
  • This will free up time and energy so they can focus on more difficult and strategic tasks such as using cases to develop business, sharing insights with stakeholders, and putting data-driven business practices that are frequently neglected or given lower priority as data analysts hurry to finish the more difficult aspects of their job.

AI Analytics and Human Data Analyst: Powerful Duo

Data analysts’ skills will be enhanced rather than replaced by AI, encouraging a collaborative approach such as,

  • Better data analysis results are achieved when human analysts and AI technology work together.
  • Human analysts apply critical thinking and domain knowledge to discover subtle insights that go beyond what AI algorithms can offer.
  • AI algorithms are excellent at quickly and precisely processing and analyzing huge volumes of data.
  • Human analyst presents challenging questions and considers the various factors to provide insightful analysis.
  • Large data sets can contain complicated patterns and relationships that AI algorithms can help data analysts find.
  • Collaboration between AI and Human analysts encourages inventive thinking, the achievement of new possibilities, and creativity.
  • When human analysts and AI technology work together, decision-making processes are improved and better-informed decisions are made.
  • Sharing insights and coordinating data analysis with company objectives are made easier by communication between human analysts and AI.
  • Human analysts can concentrate on higher-level analysis strategy creation and generating corporate value by using AI as a tool.
  • In data analysis, human and AI collaboration unlocks the maximum potential, leading to improved outcomes, innovation, and competitive advantage.

Recommended Articles 

How to Stay Relevant as a Data Analyst in the AI Era?

You must actively integrate AI into your work processes if you want to remain relevant as a data analyst in the upcoming years. 

Follow the things listed below, you will improve your capabilities and skills. You will be more prepared to provide insightful information and establish yourself as an important member of the data analytics field.

  • Keep updated with the newest AI developments, methods, and trends that affect data analysis. 
  • Learn about subjects including automated analytics, natural language processing, and machine learning.
  • You can get started by signing up for an online course or boot camps in person or online, joining groups on LinkedIn, following certain hashtags, and reading resources on the internet that provide lots of information.
  • Improve your potential for AI-related abilities. You can use AI in your data analysis process by improving your skills in areas like machine learning, data mining, and programming languages that are frequently in AI research (Such as Python and R).
  • Investing in some of the available online courses (Like IIM SKILLS, and Data Analytics Course) is a great place to start. You will become a lot more appealing to any firm by learning the most recent methods for AI and data analysis.
  • Learn how to make use of the available AI tools and technologies to increase your productivity and creativity. They can assist you in automating particular processes, enhancing your analytics skills, and improving your capacity to discover insights, whether they are general tools like chat GPT or tools created specifically for data analysis. 
  • To find areas where AI can increase productivity and create value, identify AI use cases and constantly review your business activities.
  • As you try to maximize company results, promote a data-driven experimental culture among your team members so that everyone can benefit from one another’s knowledge. 

Professional Courses from IIM SKILLS

Frequently Asked Questions:

Q. Why does AI need data analysis?

Answer: Data analysts work on projects with AI developers since they are committed to offering insights into goods, such as for a model of artificial intelligence. Although they both seek to enhance the user experience for the product, they can achieve this aim in different ways.

Q. What function does Artificial Intelligence and Machine Learning serve in Data Analytics?

Answer: Marketing data analytics are being transformed by Artificial Intelligence and Machine Learning, which allows businesses to improve marketing performance overall, optimize marketing campaigns customize marketing tactics, and acquire deeper customer insights.

Q. What does AI analyst mean?

Answer: A modern-day IT professional known as AI Data Analyst, who uses machine learning methods and advanced analytical techniques to acquire, prepare, clean, and analyze data. AI Data Analyst, as his title indicates, uses artificial intelligence to carry out their duties.

Q. What advantage do AI analytics can offer?

Answer: Comparing AI analytics to a human worker, AI analytics may increase the scope and speed of data analysis. It may be used to find links in data, detect patterns, and offer insights quickly.


While AI can automate some human works, it still needs human input and supervision to develop and update its models. It is far from certain that it will ever completely replace people. AI will not only be used as a tool to facilitate some of these tasks, it will speed up workflows. Humans will still be required for more complicated and subtle projects.

Additionally, a data analyst has a special set of skills that AI does not have yet. These are the capacity to explain discoveries and insights to non-technical stakeholders. In the future, organizations will continue to invest in data professionals who can use artificial intelligence systems with assurance and security. 

As a result, it is reasonable to say that AI will expand, improve, and make data analysts smarter rather than fully replacing them at least for now.




Swati Varli is an intern at IIM SKILLS as a Content Writer. Always being the happy kid whenever it comes to nature, she holds a Master’s degree in wildlife. She is a weeb and passionate about arts and crafts, reading, journaling, dancing and solo travel. For her interest she is always ready to explore new things against her better judgment. At the same time also being the person who will meow back to stray cats just to get their attention.

Leave a Reply

Your email address will not be published. Required fields are marked *